ID:258290
 
http://i118.photobucket.com/albums/o99/pakbaum/xm-1.jpg

I know it looks like crap, but I've spent a lot of time on it and cannot figure out what I need to do to "fix" it. I've never had trouble finding out what was wrong with an icon before.

So show me how you would do it or give me a suggestion if you please.
Don't save files as jpg,it messes with your image. Save them as PNG or GIF(I don't know what the heck TIF is but it doesnt seem to mess with images either).